Taxes and Duties on Wapda’s Electricity Bill
Government employs a range of taxes and duties to performs its operations and functions. Some taxes are indirect and some are direct taxes/duties.
WAPDA collects multiple taxes and duties from its electricity consumers, these may includes below listed taxes and duties:
- Fuel Price Adjustment – FPA
- FC Surcharge
- Quarterly Tariff Adjustment – AQTA
- Fixed Charges
- Electricity Duty
- TV Fee
- GST – General Sales Tax
- Income Tax
- Extra Tax
- Further Tax
- GST on FPA
- ED on FPA
Fuel Price Adjustment – FPA
Fuel price adjustment (FPA) is a difference between actual fuel prices and reference fuel price. Difference amount will be added in your electricity bill. In simple words, its difference adjustment between the proposed fuel price of current month and actual fuel price of current month.
As in Pakistan, electricity is produced by using the thermal electricity production method, and for which fuel or furnace oil is used. fluctuation in furnace oil prices are common in Pakistan. Its deducted after 03 months deduction is done on monthly basis.
FC Surcharge
FC Surcharge is known as Finance Cost Surcharge. Rs. 0.43/kWh and per electricity unit consumed to all category electricity consumers, either industrial or residential, expect lifeline domestic consumer – less than 100 units consumer per month.
Quarterly Tariff Adjustment – AQTA
Quarterly Tariff Adjustment’s is designed to adjust the financial pressure on power supplier companies. Adjustment is normally 2.74 – 2.75 Rupees per unit or kWh, based on changes in cost of power generation. This adjustment will not applied to expect lifeline domestic consumer – less than 100 units consumer per month.
Fixed Charges
In Federal budget 2024 – 25, NEPRA has imposed an additional charges on domestic electricity consumers, using more than 300 units per month. This fixed charges will be imposed from July 1, 2024. Fixed charges will be imposed as per the number of units consumed for residential / domestic consumer and for commercial users its will applied as per the kWh.
Residential / Domestic Electricity Consumers
| Units Consumed / Per Month | Fixed Charges (Rupees) |
|---|---|
| Up to 300 Units | 0 Rupees |
| 301 – 400 Units | 200 Rupees |
| 401 – 500 Units | 400 Rupees |
| 501 – 600 Units | 600 Rupees |
| 601 – 700 Units | 800 Rupees |
| 701 – Above | 1000 Rupees |
Note: Residential electricity consumer using Time of Use (ToU) meter will also pay Rupees 1,000 fixed charges per month.
Commercial Electricity Consumers
| Electricity Load | Fixed Charges (Rupees) |
|---|---|
| Load (less than 5 kWh) | 1,000 Rupees |
| Load (More than 5 kWh) | 2,000 Rupees |
Electricity Duty
Electricity Duty is a duty applied to every electricity consumer. Its a variable charges ranging (1% – 1.5%). An electricity duty increases as per the number of units consumed by electricity consumer.
TV Fee
Its a fixed charges implemented on electricity consumers. For domestic consumer TV fee is Rupees 35/- and commercial user TV fee is Rupees 60/-
GST – General Sales Tax
Under 1990 Sales Tax Act. GST will be applied to all the consumer at the rate of 17% on the entire electricity bill.
Income Tax
Income tax on electricity bill is a mandatory deduction, which is imposed by government of Pakistan on every electricity consumer. The Amount / percentage of income tax vary based on scenario, you can check the updated-rates of income tax.
Extra Tax
Extra Tax is charged to commercial and industrial users, which are not an income tax filter. FBR Extra tax rates will be vary from 5% to 17%.
Further Tax
This tax applied to the customers / consumers other than domestic, agriculture, bulk consumers and street light connections – who are not registered and not sales tax return filer. Flat rate of 3% applied.
GST on FPA
Under 1990 Sales Tax Act. GST (General Sales Tax) will be applied to all the consumer at the rate of 17% on the amount of fuel price adjustment.
ED on FPA
Excise Duty (ED) on fuel price adjustment is 1% to 1.5% | its a variable amount chargeable on electricity bill.
Conclusion
No doubt electricity prices are increasing day by day in Pakistan, we suffering from this a lot. Electricity bill is a part of several taxes and multiple duties.
